Evonik business figures 2024: Profit increased

Due to the positive development over the course of the year, the Evonik Group raised its forecast in the summer of 2024. At € 15.2 billion, sales were roughly on a par with the previous year. Accordingly, profitability, measured by the adjusted EBITDA margin, increased significantly from 10.8 percent in the previous year to 13.6 percent. "We have grown in the political and economic headwinds of the past year! We have become more robust," says Christian Kullmann, Chairman of the Executive Board. "This will continue to pay off this year, even though the environment remains difficult. We now have to keep at it." The focus on free cash flow proved successful in 2024. At € 873 million, the free cash flow for the year was 9% higher than the already good level of the previous year (€ 801 million), primarily thanks to the higher operating result and continued discipline in investments. The cash conversion rate reached 42 percent and was thus once again above the target of 40 percent.

Positive net income at Evonik

All in all, Evonik reported positive net income of €222 million in 2024. The return on capital employed (ROCE) improved to 7.1 percent (2023: 3.4 percent). At 4%, sales volumes rose faster than global economic growth in 2024. Prices fell by an average of 2 percent. Evonik is confident about the current fiscal year. In the first quarter, Evonik expects adjusted EBITDA to be above the level of the prior-year period (€522 million). For the full year, adjusted EBITDA is expected to be between €2.0 billion and €2.3 billion. The cash conversion rate is expected to be around 40 percent. ROCE will continue to improve.

Evonik Specialty Additives Division with higher sales

"Sales in the Specialty Additives Division increased by 2 percent to €3,578 million. This was the result of noticeably higher volumes, while lower selling prices, mainly due to the passing on of lower raw material costs and slightly negative currency effects, had the opposite effect. Products for the construction and coating industry recorded significantly higher demand in terms of volume with slightly lower sales prices and achieved sales that were noticeably higher than in the previous year. Oil additives were able to increase their sales with higher volumes. Sales of additives for polyurethane foams and consumer durables fell slightly as a result of a slight drop in sales prices. In a highly competitive environment, crosslinkers achieved lower sales than in the previous year due to price factors. Adjusted EBITDA in the Specialty Additives division improved by 11% to €744 million. This was primarily due to the noticeable increase in volumes, the resulting higher plant utilization and cost savings. The adjusted EBITDA margin increased from 19.1% in the previous year to 20.8%.